Please see below for a brief overview of the information included in our First Quarter Eastside Office Market Report.

While the absorption for the quarter was negative, overall activity is beginning to pick up in most of the Eastside submarkets outside of downtown Bellevue. Both the lack of large blocks of space and the dramatic increase in rental rates of Bellevue CBD have resulted in tenants focusing on more cost effective options with free parking in the immediate areas surrounding downtown. Much of the activity has focused on smaller users, as there have been a very limited number of larger (20,000 sf+) tenants seeking office space.

Moving into the second quarter we continue to forecast slow and steady improvement in all sub-markets. Given the relative lack of large blocks of space (with I-90 the glaring exception) vacancy rates will get back on track to continue their gradual but continual descent. Rental rate increases will be modest and restricted from large spikes until tenant activity intensifies and vacancy rates drop further.

For more information, please see our complete First Quarter 2013 Eastside Office Market Report.

Click here to read the Seattle Times article In South Lake Union rezone, Vulcan loses, Skanska wins.

South Lake Union’s Fairview Avenue North is the location of Broderick Group’s 400 Fairview listing.

For more details about 400 Fairview, please contact Trevor Clark, Damon McCartney or Oscar Oliveira.

Click here to read the Puget Sound Business Journal article Security Properties strikes deal for residential project in Bellevue’s Spring District.

The Spring District is a planned 36-acre mixed-use development by Wright Runstad & Co.

For more information on the Spring District, please click here or you may contact Jeff Watson, Grant Yerke, or Matt Schreck of Broderick Group, Inc.

Click here to read the Seattle Times article Tenants for Bullitt Center must think green.

CURRENT STATE OF THE MARKET:

The Eastside market saw steady activity throughout the 4th quarter of 2012. Throughout the year, Class A properties in the close-in markets were the most active. Downtown Bellevue, for instance, saw its vacancy drop nearly 5% down to 9.4% (the first time it has been below 10% since 2007). While the entire Eastside market had a positive absorption of 518,357 square feet, the Bellevue CBD accounted for nearly 66% of this total.

SUMMARY:

• Vacancy rates are down 1.5%, from 14.6% at end of year 2011 to 13.1% at end of year 2012.
• The market saw positive net absorption of 168,820 square feet in the 4th quarter. Total net absorption for 2012 was positive at 518,357 square feet.
• Asking rates increased on average to $28.92/SF, gross, up for the 4th consecutive quarter.

To see the complete 2012 Year End Real Report please select the following link: Eastside Market Real Report.

SaltWorks Inc., America’s leading provider of gourmet sea salts and bath salts, has leased 28,000 square feet at the Mackie I Building. The additional space will support their neighboring corporate facility.

Steve Henderson and Eric Meussner of Broderick Group represented SaltWorks in securing and negotiating the lease.

Western Marine Electronics, a leading sonar design and manufacturing company, executed a 10 year sale/leaseback of their 82,300 SF facility in Woodinville, WA.

Tyler Slone, Paul Jerue and Chris Langer of Broderick Group, were retained by WesMar to execute the transaction. Working within a shortened timeline to secure the seller favorable tax benefits, Broderick Group was able to assist in marketing, negotiating and closing the sale within a matter of months.

Cisco Systems has signed a lease to renew for 29,000 square feet at City Center Bellevue.

Jason Furr and Zach Zaborowski represented American Assets Trust with negotiating the transaction.

Click here to read the Puget Sound Business Journal article Consolidations by T-Mobile, Verizon hurt the Bellevue I-90 office market.

For more information on Sunset North availablilty, please contact Paul Sweeney, Jason Furr, or Tony Ulacia of Broderick Group, Inc.

Click here to read the Seattle Times article Office-vacancy rates lower, dropping faster on Eastside.